1 2010 RESULTS HIGHLIGHTS Turnover exceeds R10 billion Headline - - PowerPoint PPT Presentation

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Headline Earnings +39% Operating Cash Flow per share +40% Capital Distribution 70 cents per share

2010 RESULTS HIGHLIGHTS

Turnover exceeds R10 billion

CAGR % Since Inception Since Listing Revenue 51% 36% EBITA 55% 39% HEPS 49% 35%

COMPOUND ANNUAL GROWTH RATE

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73 353 936 1 004 1 561 1 890 2 202 2 815 3 449 4 026 4 682 8 441 10 147 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Revenue Growth Since Inception

Revenue – R’millions 4 17 26 47 63 79 104 138 185 210 226 378 471 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

HEPS Growth Since Inception

HEPS – Cents Per Share 14 72 211 300 416 501 632 833 987 1 198 1 314 2 270 2 717 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

EBITA Growth Since Inception

EBITA – R’millions

Year ended June 2009 R’m Year ended June 2010 R’m % Change

Continuing Operations Revenue 10 147 8 441 +20% Gross Profit 4 604 3 877 +19% Net operating expenses (1 887) (1 607) EBITA 2 717 2 270 +20% Amortisation (102) (95) Operating profit 2 615 2 175 +20% Net funding costs (370) (475) Share of after tax loss of associates (2) (3) Profit before tax 2 243 1 697 +32% Tax (468) (359) Profit after tax from continuing operations 1 775 1 338 +33% Discontinued Operations Profit for the year from discontinuing operations 203 16 Profit for the year 1 978 1 354 +46% EPS 494.9 cents 374.6 cents +32% HEPS 482.9 cents 389.4 cents +24% 4

INCOME STATEMENT RE-ANALYSED

REVENUE AND EBITA BY SEGMENT

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International 39% South Africa 58% SSA 3% June 2010 : *EBITA : R2.8bn International 38% South Africa 53% SSA 9% June 2010 : Revenue - R10.6bn

International 38% South Africa 51% SSA 11%

June 2009 : Revenue - R8.4bn

International 44% South Africa 48% SSA 8%

June 2009 : *EBITA : R2.3bn *EBITA before disposals and impairments

ANALYSIS OF SEGMENTAL REVENUE

6 * Represents revenue from the sale of domestic and global brands

South Africa Sub-Saharan Africa Asia Pacific Latin America Rest of the World 5 652 910 1,468 1 150 1 435 4 309 931 1 234 1 144 822

* Revenue by Customer Geography R10.6 billion (2009 : R8.4 billion)

2010 2009

R’millions

ANALYSIS OF REVENUE FROM GLOBAL BRANDS

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South Africa Asia Pacific Latin America EMENAC Rest of the World 100 453 337 1 036 82 72 319 303 772 45

Revenue from Global Brands R2.0 billion (2009 : R1.5 billion)

2010 2009

R’millions

Year ended June 2010 Year ended June 2009

South Africa 28% * 26% Sub-Saharan Africa 8% 19% International 28% 32% Group 27% * 27%

*EBITA percentages has been normalised to exclude compensation for loss of profits received from insurers in respect of Aspen Nutritionals

SEGMENTAL EBITA%

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29% 30% 27% 27% 27%

2006 2007 2008 2009 2010

Group EBITA% Trend

R1.0bn R1.2bn R1.3bn R2.3bn

2006 2007 2008 2009 2010

89% 88% 79% 49% 58% 11% 12% 21% 51% 42%

Analysis of EBITA

Southern Africa International

R2.8bn R2.3bn

Interest expense Interest income Preference dividend Notional interest on financial instruments Forex & fair value (gains)/losses Net funding costs

2010 2009

• 224

FUNDING COSTS

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Net Funding Costs

R'millions

553 615

• 188

28 38

• 4
• 7
• 19

53 370 475

Year ended June 2010 R’m Year ended June 2009 R’m

Assets Non-current assets 12 178 6 921 Tangible fixed assets 3 012 2 374 Goodwill 456 398 Intangible assets 8 610 4 104 Other non-current assets 100 45 Current assets 4 683 3 536 Cash 2 940 2 065 19 801 12 522 Equity and Liabilities Capital and Reserves 10 886 4 263 Non-current liabilities 3 086 4 038 Preference shares - liability 387 392 Long term interest bearing debt 2 260 3 434 Other non-current liabilities 439 212 Short term interest bearing debt 3 720 2 670 Other current liabilities 2 109 1 551 19 801 12 522

ABRIDGED BALANCE SHEET

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CAPEX INVESTMENT TREND

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169 288 379 627 632 2006 2007 2008 2009 2010

Investment in Tangible Assets R2.1 billion over five years

R'millions

Year ended June 2010 R’m Year ended June 2009 R’m

Cash operating profit 3 269 2 668 Working capital requirements (344) (508) Cash generated from operations 2 925 2 160 Net finance costs paid (609) (759) Investment income received 182 224 Tax paid (465) (333) Net inflow from operations 2 033 1 292 Operating cash flow per share 506 cents 361 cents Working capital as a % of Group sales 24% 26%

ABRIDGED CASH FLOW STATEMENT

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KEY LIQUIDITY RATIOS

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38% 62% 29% 71% 40% 60%

Debt Equity

51% 49% 24% 76% 402 709 652 1 292 2 034 1 032 968 2 011 4 039 3,019

2006 2007 2008 2009 2010

Net Debt & Operating Cash Flow Trend

Net cash flow from operating activities Net Debt

R'millions

KEY LIQUIDITY RATIO

CORPORATE ACTIVITIES

• Series of interdependent strategic transactions
• South Africa, Sub-Saharan Africa, Global Brands, Bad Oldesloe
• 68.5 million shares issued to GSK
• Transaction value of R4.6 billion
• Successfully integrated

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1 December 2009 : Completion of GSK Transactions

CORPORATE ACTIVITIES

• Agreement reached to sell the Campos manufacturing facility plus products from

Strides

• Part of restructuring plan for business in Brazil
• Exit from tender market products, contract manufacture
• Risks and rewards transferred to Strides
• Completion pending regulatory process

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3 March 2010 : Announcement of Sale of Campos

CORPORATE ACTIVITIES

• Sale of 50% shareholding in oncology joint ventures to Strides for USD117 million
• License for existing and future oncology products secured for specified territories
• Alignment with Aspen business model
• Onco Therapies complete : R155 million profit on sale
• Onco Laboratories to complete : R300 million profit on sale anticipated

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18 March 2010 : Announcement of Restructure of Oncology Arrangements

CORPORATE ACTIVITIES

• Largest listed pharma business in Australia
• Pharma sales > AUD600 million
• Support of Sigma Board
• Purchase consideration AUD900 million
• Funded by cash and debt
• Synergies with Aspen Australia, growth platform for Australia and region
• Subject to shareholder approval, other conditions precedent

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16 August 2010 : Announcement regarding purchase of Sigma Pharmaceuticals

DISTRIBUTION OF FUND MANAGERS

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South Africa 59% North America 23% Europe 15% Asia Pacific 2% Other 1%

As at 30 June 2009

South Africa 43% North America 29% Europe 25% Asia Pacific 2% Other 1%

As at 30 June 2010

CORPORATE ACTIVITY

• Environmental Management
• Resource conservation initiatives are in place to save on and optimise energy and

water consumption

• Waste management protocols are applied to ensure responsible disposal of

harmful substances

• Recycling initiatives are in place
• Corporate Social Investment (CSI)
• Contributed to 39 CSI projects in South Africa
• 7 Primary healthcare infrastructure projects
• 15 HIV/AIDS initiatives
• 6 Healthcare initiatives
• 7 Community upliftment initiatives
• 4 Educational and training initiatives
• Close to 780 000 beneficiaries were directly and indirectly supported

through Aspen’s CSI projects

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CORPORATE ACTIVITY

• Employees
• The Group provides secure employment to more than 6 000 employees
• More than 50% of the employees received training during the year
• On-site clinics provide a wide range of health checks, HIV/AIDS counselling

and employee support as well as healthcare awareness programmes

• Aspen, through QualSA, provides financial support to employees and their

immediate families suffering from HIV/AIDS

• Benchmarking Sustainability
• Consideration and application of King III report on corporate governance
• Aspen aligned itself to global Sustainability Reporting initiatives in 2010, in

accordance with the Global Reporting Initiative, focussing on economic, environmental and social factors impacting business sustainability

• Aspen received an A-rating from Empowerdex and was verified as a Level 4

contributor thereby validating its commitment to transformation in the South African business

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ASPEN GROUP

• Financial Highlights
• South Africa major contributor
• International impressive
• Consider Rand strength
• Aspen cash generating machine
• Resumption of capital distribution
• Strong currency hedge
• Import component in South Africa matched by international income
• South African manufacturing operation
• World class
• Creating sustainable advantages
• Contributing to margin improvements
• GSK transactions implemented
• Positive impact for seven months
• International operations
• Global Brands performing
• Operations on track
• Asia Pacific consolidating gains
• Work to do in Sub-Saharan Africa
• Positive strides in Latam
• Interesting opportunities

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Headlines

ASPEN AMONGST ITS PEER GROUP

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Sun Pharma Cipla (India) Aspen Dr Reddy Gideon Richter Krka Hikma Adcock Cipla Medpro 7,8 5,3 5,3 5,1 4,1 2,9 2,4 1,5 0,4 7,1 5,4 5,8 5,3 3,4 3,0 2,5 1,4 0,4

Market Capitalisation and Enterprise Value Comparatives

Market Cap-September 2010 EV 2010

USD' billion

Aspen Krka Gideon Richter Sun Pharma Cipla (India) Dr Reddy Adcock Hikma Cipla Medpro 392 363 328 288 288 256 181 173 58 534 386 314 349 327 302 203 202 78

EBITDA Comparatives

EBITDA 2010F EBITDA 2011F

USD'million

Information as per Citibank September 2010 Valuations for all companies except for Krka and Gideon Richter which are per Morgan Stanley September valuation. Aspen actual June 2010 EBITA has been used, converted at USD1.00=R7.61 Information as per Citibank September 2010 Valuations for all companies except for Krka and Gideon Richter which are per Morgan Stanley September valuation

ASPEN AMONGST ITS PEER GROUP

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Dr Reddy Aspen Krka Gideon Richter Cipla (India) Sun Pharma Hikma Adcock Cipla Medpro

1,5 1,3 1,3 1,3 1,2 0,9 0,7 0,6 0,2 1,8 1,8 1,4 1.4 1,3 1,1 0,8 0,7 0.3

Revenue Comparatives

REVENUE 2010F REVENUE 2011F

USD'billion

Aspen Cipla Medpro Adcock Hikma Dr Reddy Cipla (India) Sun Pharma Gideon Richter Krka

40,8% 25,8% 11,8% 11,5% 9,2% 6,2% 1,8% 1.0%

• 1,1%

39,5% 25,0% 12,4% 11,8% 13,3% 8,2% 7,9% 2,4% 1,3%

Revenue CAGR% Comparatives

REVENUE CAGR 08-10 (2yrs) REVENUE CAGR 08-11 (3yrs)

Information as per Citibank September 2010 Valuations for all companies except for Krka and Gideon Richter which are per Morgan Stanley September valuations

ASPEN AMONGST ITS PEER GROUP

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Dr Reddy Sun Pharma Cipla (India) Hikma Aspen Gideon Richter Krka Cipla Medpro

25,0 23,3 22,8 22,1 16,2 14,0 13,1 11,7 19,4 19,8 19,8 17,7 13,3 17,0 14,0 7,3

Price : Earning Comparatives

PE 2010F PE 2011F Cipla Medpro Aspen Hikma Adcock Cipla (India) Gideon Richter Dr Reddy Sun Pharma Krka 46,4% 38,4% 24,3% 17,1% 12,8% 15,0% 8,8% 7,6% 0,0% 51,6% 37,6% 24,4% 16,9% 12,3% 2,9% 17,5% 12,5%

• 2,3%

HEPS CAGR% Comparatives

DILUTED HEPS CAGR 08-10 (2yrs) DILUTED HEPS CAGR 08-11 (3yrs)

Information as per Citibank September 2010 Valuations for all companies except for Krka and Gideon Richter which are per Morgan Stanley September valuations

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ASPEN IN THE SOUTH AFRICAN MARKET

16,2 16,1 16,1 16,2 16,2 16,2 16,1 16,3 16,3 16,3 16,4 16,5 10,0 10,0 10,0 10,0 10,0 10,0 10,0 9,9 9,9 10,0 10,1 10,1 7,8 7,8 7,8 7,8 7,8 7,9 7,8 7,8 7,8 7,7 7,9 7,8 7,2 7,2 7,2 7,1 7,1 7,1 7,2 7,1 7,1 7,1 7,0 7,0 6,1 6,1 6,1 6,1 6,1 6,0 6,0 6,0 6,0 5,9 5,9 5,8 4,9 4,9 4,9 5,0 5,0 5,0 5,1 5,0 5,0 5,1 5,1 5,1 4,3 4,4 4,4 4,5 4,5 4,5 4,6 4,6 4,6 4,6 4,7 4,8 4,3 4,3 4,3 4,3 4,3 4,3 4,3 4,4 4,3 4,3 4,4 4,3 2 4 6 8 10 12 14 16 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Aspen/GSK Adock Ingram Sanofi-Aventis Pfizer Novartis AstraZeneca Cipla Medpro Merck & Co

Total Pharma Market MAT Rand Share % as per IMS – June 2010

For the month of June we reached 17.7% - a new record. All South African listed companies performing!

GSK consolidated retrospectively

ASPEN IN THE SOUTH AFRICA MARKET

• Retained market leadership in South Africa
• Number 1 in public and private sectors
• Nearly 1 in 4 of every tablet / capsule dispensed is for an Aspen product
• Sales 
• Pharma  by 40%
• Consumer  by 5%
• Operating Income
• Pharma  by 56%
• Consumer  by 12%
• About 10% of sales are from GSK products
• Globally cost competitive facilities
• With scope to reduce costs
• GSK South African business seamlessly integrated
• Synergies immediately evident
• Broader reach  market shares

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ASPEN IN THE SOUTH AFRICAN PRIVATE MARKET

5 000 000 10 000 000 15 000 000 20 000 000 25 000 000 30 000 000 Aspen / GSK Adcock Novartis Cipla Ranbaxy Pfizer Sanofi J&J Bayer Merck Pharma Dynamics AstraZeneca Servier MSD

Manufacturer Scripts % Share Aspen/GSK 28,532,828 24.1% Adcock Ingram 17,375,160 14.7% Novartis 7,581,336 6.4% Cipla 7,542,030 6.3% Ranbaxy 3,914,599 3.3% Pfizer 3,837,888 3.2% Sanofi Aventis 3,443,120 2.9% Johnson & Johnson 3,437,107 2.9% Bayer Schering 3,340,063 2.8% Merck 2,414,750 2.0% Pharma Dynamics 2,362,503 2.0% Astrazeneca 2,268,165 1.9% Servier 2,166,637 1.8% MSD 1,828,805 1.5% Ingelheim Pharma 1,757,641 1.4% Schering Plough 1,725,665 1.4% Pharmafrica 1,429,000 1.2% Novo-nordisk 1,332,116 1.1% Reckitt Benckiser 1,306,973 1.1% Inova Pharma 1,271,579 1.0%

Number of Script Lines Dispensed : Source ImpactRx July 2010 Almost 1 in 4 script lines dispensed in the South African private market is for an Aspen product

Number of script lines

ASPEN IN THE SOUTH AFRICAN PUBLIC MARKET

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Aspen 24% MSD 8% Servier 6% Novartis 6% Aventis 5% Rolab 5% Bayer 5% Pfizer 3% Adcock 3% Pharmacia 3% Other 32% Aspen/GSK 30% Other 25% Multinationals 19% Gulf Drug 4% Biotech 2% Adcock 3% Pharmachem 2% Sandoz 2% Daiichi Sankyo 3% Biogaran 5% Cipla 3% Dezzo 2%

RT289 Oral Solid Dosage Tender (excludes ARVs) A decade of Public Sector service and leadership

2007 2008 2009 2010 2011 +120% +78% +39% +16%

ASPEN IN THE SOUTH AFRICAN PUBLIC MARKET

South African Operations – Driving Cost Reductions

• Volume key driver
• Economies of scale driving efficiencies
• Heavy investment in infrastructure already made
• Smaller capex investment to drive

capacity enhancements Cost effectiveness of our facilities underpin our future sustainability Output increase for Unit 1 over 500% in 4 years

Unit 1 OSD increase in annual recoveries 29

SOUTH AFRICAN MARKET

• In last year OSD
• Inspected / re-inspected by FDA, WHO and ANVISA (Brazil)
• No significant findings
• Worked tirelessly
• Process improvements
• Decreased drying time ten fold
• Campaigned and increased batch size
• Increased volumes
• Saved change over times
• Saved lab time
• International volumes
• Piggyback off existing costs
• Contribute towards economies of scale
• Further cost reductions anticipated
• Interventions above
• Volume  high fixed expense base
• Consolidation and automation of facilities
• Assist with ARV pricing

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Operations

ASPEN IN THE SOUTH AFRICAN PUBLIC MARKET

• High value
• Low margin
• Have capacity – absorbs facility overheads
• Tendered competitively
• Demonstrated capability
• Responsive to unpredictable volume shifts
• Reliable supplier
• Expect tender to commence in November
• High risk tender
• Impacts working capital
• Currency exposure
• Impact on workforce
• Mitigation strategies

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ARV Tender

THE SOUTH AFRICAN MARKET PERFORMANCE

OTC R6.0bn Ethical/Branded R11.5 bn Generic R4.5bn

2010

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OTC R2.8bn Ethical/Branded R5.4 bn Generic R1.2bn

2001 Total Private Market as at June 2010 R21.97bn as per IMS (June 2009 – TPM R19.93bn) Growth from 2001 to 2010 OTC growth 115% Branded growth 113% Generic growth 271%

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THE MARKET PERFORMANCE

T

• tal

+10.2% +12.7%

Ge ne r ic

+14.0% +11.0%

OT C

+8.7% +8.4%

Br ande d

+10.0% +19.0%

South African Private Market Growth as per IMS – June 2010

SOUTH AFRICAN MARKET

• Defensive and resilient
• Growth continues
• Generics lead the way
• World Cup disappointing
• Public and private costs hard to contain in South African and emerging markets
• Population growth
• Growing affluences
• Ageing population
• Infectious diseases – young are also sick
• Improved access to diagnosis
• Chronic diseases projected to double in next eight years
• However emerging markets are fluid
• Only constant is change
• Requires dynamic teams – embrace change not threatened by it
• Significant banner for bureaucratic/centralised organisations
• Frustration  risks  rewards 
• Local rules for local players
• South African market relatively consistent with the above
• Aside from limited local support

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SOUTH AFRICAN MARKET

• South African single exit price is fixed in Rands
• Operating margins affected by currency volatility
• Import cost component
• Government focus on NHI
• Implementation process not clear
• All of the above is forcing a shift to affordability and  generic usage
• However quality overlay is the key to driving the shift
• This quality underwrite is the Aspen hallmark

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Emerging markets require decisive, commercially astute management with the latitude to make decisions. This is our environment and culture and part of the Aspen DNA.

SOUTH AFRICAN MARKET

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Aspen 33,9% Cipla 18,4% Other 16,4% Novartis 9,5% Adcock 10,2% Lupin Labs 4,3% Daiichi Sankyo 3,9% Pfizer 3,4%

Private Generic Market MAT Rand Share % as per IMS – June 2010 Big slice of a growing pie

SOUTH AFRICAN MARKET

• Generics have a 27.9% value share
• Generics have a 60.9% of counting units
• Continues to outpace the overall market
• Anticipate this trend to continue
• Fragmented market
• Numerous entrants
• Highly competitive
• Key drivers
• Patent expirations
• Affordability
• Meet patient needs

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Generic Market

SOUTH AFRICAN MARKET

• Aspen retained leadership position
• Trench welfare
• Strong competition – competitors agile
• Limited acquisitive opportunities
• Focus
• Provide service
• Provide unrivalled range of quality products
• A-Z one stop shop
• Manage complexity well
• We have the best people
• On our organic pipeline
• Delivered late in 2010 but expect a big year in 2011
• Breadth and quality of portfolio, representation and distribution continues to

give us strategic advantages

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Generic Market Aspen is Trusted and Credible

SOUTH AFRICAN MARKET

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12,16 12,19 12,24 12,30 12,32 12,39 12,36 12,35 12,40 12,28 12,52 12,35 10,12 10,12 10,20 10,28 10,38 10,44 10,44 10,58 10,57 10,67 10,78 10,96 9,19 9,27 9,29 9,38 9,44 9,42 9,53 9,44 9,48 9,54 9,56 9,64 8,81 8,78 8,71 8,69 8,66 8,66 8,63 8,53 8,56 8,51 8,45 8,41 7,44 7,40 7,42 7,40 7,39 7,37 7,40 7,45 7,37 7,38 7,41 7,41 5,30 5,26 5,27 5,28 5,24 5,26 5,26 5,33 5,32 5,30 5,27 5,26 6,38 6,51 6,52 6,40 6,40 6,28 6,26 6,30 6,34 6,36 6,29 6,06 5,21 5,22 5,26 5,23 5,22 5,21 5,21 5,14 5,15 5,13 5,23 5,22 5 6 7 8 9 10 11 12 13 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Sanofi-Aventis Aspen/GSK AstraZeneca Pfizer Merck & Co Novartis Roche Adcock/Parke Med

Total Branded Market MAT Rand Share % as per IMS – June 2010 Yes – we can!

SOUTH AFRICAN MARKET

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12,4 13,0 12,6 12,8 12,1 12,6 11,6 12,4 12,3 11,4 14,7 9,8 10,0 10,3 10,6 10,8 10,9 10,8 10,3 11,0 10,8 11,7 11,4 12,8 9,4 9,1 9,6 9,7 9,9 9,5 10,3 9,4 9,2 10,2 9,3 10,5 8,7 8,8 8,3 8,5 8,4 8,8 8,6 8,1 8,5 8,1 8,1 8,2 7,2 7,7 7,9 7,7 7,6 7,1 7,2 7,5 7,1 7,4 7,5 7,0 5,7 5,0 5,4 5,7 5,0 5,4 5,8 5,4 5,2 5,2 4,9 4,9 6,8 7,5 6,7 5,1 6,0 5,4 5,8 6,2 6,4 6,1 5,8 4,7 5,0 4,9 5,2 4,9 5,0 5,0 5,4 5,6 5,6 5,1 6,0 5,0 4 5 6 7 8 9 10 11 12 13 14 15 16 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Sanofi Aventis Aspen/GSK AstraZeneca Pfizer Merck & Co Novartis Roche Adcock/Parke Med

Total Branded Market Monthly Value Share % as per IMS – June 2010 Number 1 market share in April and June

SOUTH AFRICAN MARKET

• Largest value component of the South African market
• Challenging for number 1 spot
• Already!
• Commercial capability already demonstrated
• GSK’s innovation and Aspen’s commercial expertise
• Risks – patented products under generic threat
• Truvada and Seretide
• Opportunities – NCE launches
• Avamys and Synflorix
• Vaccines – a real opportunity
• Demonstration of credibility Aspen enjoys with South African physicians

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Branded Division Redefining pharmaceutical marketing in South Africa and now taking this concept into emerging markets

SOUTH AFRICAN MARKET

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OTC Market June 1999 – June 2001

33,6 30,1 27,4 9,7 10,4 11,8 5,4 5,7 5,8 4,3 4,1 3,9 3,3 3,6 3,1

5 10 15 20 25 30 35 40 Mat Jun-99 Mat Jun-00 Mat Jun-01

Adcock Aspen GSK Janssen Novartis Reckitt Benkiser

SOUTH AFRICAN MARKET

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18,4 18,7 18,7 18,7 18,8 18,9 19,0 18,9 19,1 19,2 19,5 19,5 15,5 15,5 15,5 15,7 15,5 15,5 15,5 15,6 15,5 15,5 15,4 15,4 7,6 7,6 7,6 7,5 7,6 7,5 7,5 7,5 7,5 7,4 7,3 7,2 4,3 4,3 4,3 4,2 4,2 4,2 4,2 4,2 4,2 4,1 4,1 4,1 3,9 3,9 4,0 4,0 4,0 4,1 4,1 4,1 4,1 4,2 4,3 4,4 4,0 4,0 4,0 4,0 4,0 3,9 3,9 3,9 3,8 3,8 3,9 3,8 1 3 5 7 9 11 13 15 17 19 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Adcock Ingram Aspen Johnson & Johnson Sanofi-Aventis Pfizer Cipla Medpro Novartis

Private OTC Market MAT Rand Share % as per IMS – June 2010 We thought we were in range in July 2009. Hats off to our competitors – we have to raise our game!

SOUTH AFRICAN MARKET

• OTC Market
• Growth has been disappointing
• Expected  self medication
• Tougher times
• Effect of private labels?
• Steadily grown OTC market share over time
• Laxatives / Slimming
• Unable to recover market share losses
• Competition is fierce
• Interesting product innovations
• Ex Brazil / Australia
• Own developments

44

OTC / Consumer We are committed and have a plan

SOUTH AFRICAN MARKET

45

Extracted from Campbell Belman Survey – June 2010

An evaluation of the major prescription Pharmaceutical Companies in South Africa amongst top retail pharmacy

• utlets in major metropolitan areas

2010 2009 Pharmacy 1 2 Managed Healthcare 1 5 OTC 2 1

10 20 30 40 50 60 70 80 90 Is financially sound & secure Has a strong cash flow Has clearly defined

• bjective/strategy

Is a well managed company Is reputable, honest and trustworthy Believes in full disclosure Makes effective use of capital

• Co. reports reflect
• co. performance

Has inherently strong products/services Alert to new ideas for profitability Has an effective chief executive Has a clear edge

• ver its competitors

Adcock Ingram Aspen Cipla-Medpro

SOUTH AFRICAN MARKET

Extracted from Campbell Belman Survey – June 2010

Research conducted amongst 130 Asset Managers, 42 Analysts and 9 Members of the Financial Media

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10 20 30 40 50 60 70 80 90 Feel confident in its long term future Chief executive is a straight talker Communicates well with the investors Senior management accessible Strong growth potential Maintains balance between risk & return Company results match expectations Has good relationships with government Practices csr without detracting appeal Has a good record

• f labour relations

Quality of its people impressive Has excellent investor relations Adcock Ingram Aspen Cipla-Medpro

SOUTH AFRICAN MARKET

Extracted from Campbell Belman Survey – June 2010

Research conducted amongst 130 Asset Managers, 42 Analysts and 9 Members of the Financial Media

47

ASPEN IN THE SOUTH AFRICAN MARKET

• Results underpinned by
• Strong Rand
• Buoyant demand
• Strong cash flows
• Operational efficiencies
• Team determined to add value to South Africa
• South Africa’s best team
• Market share at record levels
• Output at record levels
• New launch income the highest in the industry

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To rest is to rust

Summary

Aspen Sanofi-Aventis Cipla Medpro Adcock Ingram Novartis Pfizer AstraZeneca Merck & Co

Value 49

ASPEN IN THE SOUTH AFRICAN MARKET

New Launch Income - Value Generated during June 2010 MAT Period 0-24 months

ASPEN IN THE SOUTH AFRICAN MARKET

• Anticipate
• Continued volume increases
• Muted increase in SEP
• Operationally
• Further volume increases
• Economies of scale to drive COGS reductions
• Currency fluctuations
• Affect operating profitability
• ARV tender award
• Increased lives
• Margins slim
• GSK integration
• 12 Months versus 7 months
• Pipeline
• Sustainable – expect even more next year

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Prospects

SUB-SAHARAN AFRICA (SSA)

• Current interest in Sub-Saharan Africa is in following broad categories
• Export from South Africa
• Negatively affected by ARV genericisation
• Commitment to procure API from licensor
• Pipeline focus on hormonals, IMF, OTC, ARV and other niche products
• IMF to impact
• Registering Aspen-owned IP
• Have first to market opportunity with licensed NCE / ARVs
• Shelys / Beta in East and Central Africa
• Collaboration with GSK

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Revenue from South Africa Exports R 94 m Shelys R267 m GSK Aspen Healthcare for Africa R549 m Total R910 m

SUB-SAHARAN AFRICA (SSA)

52

BETA 49 reps R84m SHELYS 63 reps R165m SHELYS EXPORT 13 reps R18m

Sheyls Africa - 12 Months to June 2010

• Shelys Pharmaceuticals (Tanzania)
• Beta Healthcare (Kenya & Uganda)
• Shelys Export (focus on southern / East Africa)
• Disappointing trading period
• Private sales performance encouraging
• Focus on private market paying dividends
• Sales  by 31% in this sector in Shelys Pharmaceuticals
• Address issues in the business
• Weakness in financial / internal controls
• Historical taxation / customs issues
• Actions taken include
• Aspen South Africa not just a pipeline source
• Replaced management team
• Head of Manufacture employed from within Aspen South Africa operation
• Control of financial functions
• First quarter post these actions showing pleasing turnaround

Total Sales = R267m

SUB-SAHARAN AFRICA (SSA)

• Rep force of 260
• Leverage representation
• Broader more relevant pipeline
• Dossiers in regulatory process
• Expect registration flow within twelve months
• Sales are for seven months
• 12 Months for 2011

FWCA 70 reps R138m AWA 90 reps R238m StnA 30 reps R59m EA 70 reps R114m

GSK Aspen Healthcare for Africa - Financial Year 2010

Total Sales = R549m

53

GLOBAL PRODUCTS

54

Multinational distribution Base Base Business as usual Transition + + Volumes increase as distributors are loaded Post transition

• Pipeline normalises, external distributors take

margin, Aspen distributors gear up Aspen control + + Product response to promotion, improved procurement and manufacturing costs, additional territories Aspen manufacture + + Transition to Aspen API and finished dosage form manufacture API savings staggered to 2013 FDF savings staggered most in 2013 Savings to exceed $10 million Compete effectively CYCLE REVENUE PROFIT CHARACTERISTICS

GLOBAL PRODUCTS

• Consists of GSK / Iroko products
• GSK includes two transactions
• ELIZ – Eltroxin, Lanoxin, Imuran and Zyloric
• COSMOS – Alkeran, Leukeran, Purinethol, Kemadrin, Lanvis, Myleran, Septrin and

Trandate

• Cosmos included for just 7 months
• On a like for like basis ELIZ products have grown by 19% in USD
• Affected by currency
• Transitions
• Regardless growth in double digits
• Vindication of our strategy to promote these products in emerging markets
• Managed global operational complexity
• Skills now within Aspen

55

OPPORTUNITIES FOR ASPEN GLOBAL

• Unstable 50mcg / 100mcg
• Stabilised the product
• Developed 13 strengths
• 12.5mcg / 25mcg / 50mcg / 75mcg / 88mcg / 100mcg /

112mcg / 125mcg / 135mcg / 150mcg / 174mcg / 200mcg / 300mcg

• Bio batches in production
• Worldwide market > USD1.7 billion
• Brazil alone > USD100 million

56

Eltroxin

ASPEN IN LATAM

57

Brazil 68% Colombia 3% Argentina 1% Chile 1% Mexico 16% Venezuela 11%

Latam Sales by Territory

12 Months June 2010 : R1.2bn (6 Months to December 2009 : R500m)

ASPEN IN LATAM

• Sales  R1 billion
• Aspen ownership at 100%
• Able to drive Aspen strategy
• At half year we said
• Incurred a loss in the region
• Hoped to turn to profitability in these six months
• Region not for the faint hearted
• Hopeful our strategies would be successful
• It is now profitable
• Significant turnaround
• Business shifted to private market focus
• 258 Representatives employed across Latam
• Benefits demonstrated in global brands
• Profitability is sustainable
• No longer as dependant on erratic public sector tenders
• Have an Aspen appointed management team in place

58

ASPEN IN LATAM

• Increase our representation across the geography
• Columbia, Chile, Ecuador, Peru and Argentina
• Consolidate / entrench the gains made in Brazil, Mexico and Venezuela
• Leverage our high fixed cost infrastructure
• Introduction of organic pipeline
• Product acquisitions
• High gross margins will filter through
• This territory remains
• Most challenging
• Higher risk
• Highest return
• Most exciting
• We are confident that we have a working model, and that we have a strategy that will

deliver real value in this territory

• Remains the Group’s biggest regional growth opportunity

59

Focus Areas

ASPEN IN ASIA PACIFIC

• Sales growth of 19%
• Double digit growth for 9th

consecutive year

• Australia – 67% of sales
• Japan >R100 million
• Outstanding management team

60

Sales by Territory

Australia 67% Japan 7% New Zealand 4% Philippines 3% Indonesia 3% Malaysia 3% Thailand 2% Taiwan 3% China 1% Other 7%

12 Months to June 2010 : R1.5 billion (2009 : R1.2 billion)

ASPEN IN ASIA PACIFIC

• Australia – headquarters for Asia Pacific
• Expect Asia to be a meaningful contributor
• Japan, Philippines, Indonesia, Thailand and Taiwan targeted
• Organic growth opportunity in region
• Utilisation of Aspen pipeline
• From a zero base – sustained performance and meaningful contributor within

Aspen

• Ranked 7th by volume of scripts generated in the Australian market

61

• Ranked 7th by volume of scripts

generated (excluding Generics)

• Play an important role in providing Australia

with healthcare

(source: IMS Health Australia – AMI MAT June 2010)

62

ASPEN IN ASIA PACIFIC

International Operations

Rank Manufacturer

• No. of Scripts

% Share 1 GlaxoSmithKline 12,263,798 9.7% 2 Sanofi-Aventis 11,523,163 9.1% 3 Alphapharm 8,552,991 6.8% 4 Pfizer 8,544,862 6.8% 5 Sigma Pharmaceuticals 8,507,353 6.7% 6 AstraZeneca 7,845,891 6.2% 7 Aspen Pharmacare 6,786,452 5.4% 8 MSD 6,716,966 5.3% 9 Boehringer Ingelheim 3,374,281 2.7% 10 Servier 3,031,405 2.4% 11 Bristol-Myers Squibb 2,812,354 2.2% 12 Mundipharma 2,616,357 2.1% 13 CSL 2,605,884 2.1% 14 Roche 2,566,560 2.0% 15 Abbott 2,327,924 1.8% 16 Bayer Schering 2,270,475 1.8% 17 Novartis 1,888,408 1.5% 18 Wyeth 1,804,969 1.4% 19 Janssen Cilag 1,528,261 1.2% 20 Others 28,507,124 22.6% Total 126,075,478 100.0%

ASPEN IN ASIA PACIFIC

• 98 Year history in the Australian market
• Roots in wholesale
• Diversified into Pharma
• Pharma divisions comprise
• Branded division – purchased / licensed IP
• OTC including private labels
• Generics – acquisitions of Arrow
• Contract manufacture and exports
• Sigma has good brand equity
• 1/3 of the wholesale market
• Perceived to be pharmacist’s friend
• Banner groups drive compliance
• Manufacture
• 5 Facilities across Australia
• Under significant pressure
• Poor returns from significant pharma investments
• Generic business underperforming

63

Sigma

ASPEN IN ASIA PACIFIC

• Potential to be ranked 1st by

volume of scripts generated

• Post a successful acquisition of Sigma

Pharmaceutical business 1 in every 8 Australian prescriptions should be for an Aspen product

64

Sigma and Aspen

Rank Manufacturer

• No. of Scripts

% Share 1 Aspen/Sigma 15,293,805 12.13% 2 GlaxoSmithKline 12,263,798 9.73% 3 Sanofi-Aventis 11,523,163 9.14% 4 Alphapharm 8,552,991 6.78% 5 Pfizer 8,544,862 6.78% 6 AstraZeneca 7,845,891 6.22% 7 MSD 6,716,966 5.33% 8 Boehringer Ingelheim 3,374,281 2.68% 9 Servier 3,031,405 2.40% 10 Bristol Myers Squibb 2,812,354 2.23% 11 Mundipharma 2,616,357 2.08% 12 CSL 2,605,884 2.07% 13 Roche 2,566,560 2.04% 14 Abbott 2,327,924 1.85% 15 Bayer Schering 2,270,475 1.80% 16 Novartis 1,888,408 1.50% 17 Wyeth 1,804,969 1.43% 18 Janssen Cilag 1,528,261 1.21% 19 Others 28,507,124 22.60% Total 126,075,478 100.00%

ASPEN IN ASIA PACIFIC

BRANDED BUSINESS

• The branded business is Sigma’s largest contributor to profitability
• Aspen has a successful track record in this sector
• Is the focus of the existing Aspen Australia business
• Many of these brands are owned by Aspen in other geographies
• Acquired Global Brands from GSK significant
• Combined group
• Synergies
• Compelling platform for other licensors
• Increased co-operation with multinationals

65

Why Sigma?

ASPEN IN ASIA PACIFIC

OTC / CONSUMER

• Broader Aspen range
• Leverage through compliant customers

GENERICS

• Regulated industry
• Worldwide phenomena
• Aspen has real expertise
• Procurement
• Pricing
• Manufacturing
• Pipeline
• Product positioning
• Capacity to drive the necessary COGS reductions

66

Why Sigma?

ASPEN IN ASIA PACIFIC

MANUFACTURE

• Assess best fit for individual products within the Aspen global manufacturing

network

• Manufacturing launch pad for Asia Pacific
• Japanese approval
• Exports to numerous Asia geographies

NEW OPPORTUNITIES

• Sigma channel provides access to broader generic / OTC market for Aspen products
• Aspen currently focuses on niche generics only
• Difference it could represent to Aspen
• Current Australian generic pipeline (without Sigma) USD278 million *
• With Sigma it would change to USD1,926 million *

67

Why Sigma?

* IMS value of molecules targeted

ASPEN IN ASIA PACIFIC

• We have a global manufacturing team
• Ensure able to extract margin improvements
• Across all divisions
• We have a great team in Australia
• Same team that started the operation in 2001
• Reps rated number 1 in Australia
• Highly motivated
• Will bring the necessary cohesion and confidence needed to perform in this market

68

Why Sigma?

SUMMARY AND PROSPECTS

SOUTH AFRICA

• Performed financially
• Almost all areas
• Cash flow generation continues to be our strength
• South Africa firing
• South Africa is a competitive manufacturing base
• Favourable exchange rates

INTERNATIONAL OPERATIONS

• Global brands outperforming
• Sub-Saharan Africa struggled
• Latam has been turned around
• Brazil on track
• Asia Pacific
• Another solid performance
• GSK has positively contributed to both South Africa and International

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Summary Demonstrate capability to manage a global operation

SUMMARY AND PROSPECTS

• Anticipate sustained growth
• Currency fluctuations will determine relative growth
• In South Africa
• Expect limited price increases
• Increasing volumes and strong pipeline
• In International
• Sub-Saharan Africa will give improved performance
• Asia Pacific to sustain historic performances
• Global brands anticipate future growth
• Latam has the most upside
• GSK will contribute for twelve months next year
• 7 Months this year
• Manufacturing operations
• World class, dependable and capability is giving us the edge
• Sigma – resolution expected November
• Compelling opportunity for Aspen

70

Prospects

The best is yet to come!

GENERICS BULLETIN REPORT : MAY 2010

71

1 000 2 000 3 000 4 000 5 000 6 000 7 000 8 000 9 000 10 000 11 000 12 000 13 000 14 000

Orchid Strides Impax Taro Adcock Torrent Towa Glenmark Biocon Sawai Egis Sigma Hikma Aurobindo Pharmastandard Zylus Cadila Wockhardt Sun Lupin(10,15) Orion(4) Par Alapis(4,16) Cipla(10,15) Covidien(13,14) Gideon Richter(4) Krka(4) Sanofi (Winthrop) Fresenius Kabi (4,11,12) Ranbaxy Dr Reddy(10,15) Greenstone(Pfizer)(9) Perrigo(7,8) Hospira(6) Stada(4) Ratiopharm (4,5) Watson(3) Mylan(2) Sandoz Teva(1)

Generics API's Brands Other

Turnover (USD'millions) Figures have been quoted for 2009 calendar year wherever possible, showing growth compared with previous year. Results not reported in dollars have been converted at the rates shown, but growth figures are as reported. Business breakdowns are mostly according to companies' own definitions (Source - Company reports)

Aspen (17,18) (1) Sales exclude Ratiopharm; brand sales include Copaxone sales of USD2.83m (2) Generics sales growth was 9.2% (3) Includes Arrow from December 2009 (4) Reported in Euros, converted at EUR1 = USD1.4 (5) Excludes Mepha, which was sold separately to Cephalon for about USD 600m (6) Specialty injectable sales only (7) Financial year end 27 June 2009 (8) Includes OTC sales of USD1.64bn (9) IMS Health figures for US only (10) Financial year end 31 March 2010 (11) Injectables sales only (12) Organic growth quoted (13) Specialty Pharma and API sales only (14) Financial year ended 25 September 2009 (15) Reported in Indian rupees; converted at USD1 = Rs45 (16) Human health sales only, including brands distributed for third parties (17) Financial year end 30 June 2009 (18) Reported in South African Rand; converted at USD1 = R7.5 (19) Pending fulfiment of conditions precedent (20) Fourth quarter of 2009-9 plus nine months of 2009-2010 (21) Reported in Russian roubles; converted at USD1 = RUR30 (22) Includes OTC sales of USD493m (23) Reported in Australian dollars; converted at USD1 = AUD1.1 (24) Pharmaceutical sales only (25) Financial year to 31 January 2010 (26) Reported in Hungarian forints; converted at USD1 = Huf190 (27) Financial year to September 2009 (28) Reported in Japanese yen; converted at USD1 = Y92 (29) Pharmaceutical sales only, including OTC sales of USD172m (20) Financial year to 21 March 2009 M Aspen incl Sigma (19)

Annual Sales December 2009

Moving into Global top 10?